▶ 9.2% increase in revenue and 71.3% increase in operating profit QoQ
▶ Result lead by 84% revenue increase in NA YoY

HD Hyundai Construction Equipment (CEO Chul-gon Choi) announced its Q1 earnings on Wednesday, April 26 which recorded a revenue of KRW 1.183 trillion and operating profit of KRW 80 billion. This is a 9.2% increase in revenue and 71.3% increase in operating profit compared to the previous year.

Favorable markets in emerging countries with continued raw material demand worldwide, and an increase in North America’s construction demand have been considered the main causes of the company’s growth while higher sales prices, improved product mix, and better profitability were seen as the contributions to the 71.3% operation profit increase.

For business performance by region, the Chinese market revenue reduced by 49% compared to 2022. However, NA, EU, and emerging markets saw overall growth resulting in a total increase in revenue and a successful diversification of the market.

The NA market saw exceptional results this quarter with a revenue of KRW 252.8 billion which is an 84% increase QoQ, taking up 25% of the total share of the market revenue. This shows that importance of the NA market is growing as the share has been consistently increasing from 15% in 2022 Q1 and 19% in 2022 as a whole.

The European market has also recorded a stable revenue growth with a 15% increase to KRW 109 billion. Revenue for emerging markets engaging in direct exports increased by 10% YoY to KRW 357.5 billion with continued demand in raw material mining equipment. India also widened its market share from 14.8% in 2022 to 18.1% this quarter thanks to the rising demand of the Government’s infrastructure investment and stronger local sales network.

HD Hyundai Construction Equipment expects to continue its positive performance going forward as infrastructure related investment and demand for mid-to-large size machines are on-going in developed markets. Profitability is also anticipated to stay stable with the Latin American market showing high profits and orders such as the Neom Project coming the Middle East.

According to a global construction equipment research institute, Off-Highway Research, investments on infrastructure and non-residential construction projects are expected to continue in 2023, along with demand for mid-to-large excavators from 41,000 units in 2022 to 43,000 units in 2023. <EOD>

■ HD Hyundai Construction Equipment 2023 Q1 Earnings (Unit: KRW 100 million)